FTA with ROK planned by end of year
FTA with ROK planned by end of year
Cambodia and the Republic of Korea (ROK) have pledged to finalise their Free Trade Agreement (FTA) negotiations by the end of the year to increase trade and investment between the two countries.
Minister of Economy and Finance Aun Pornmoniroth noted that the previous two rounds of bilateral free trade agreement negotiations between Cambodia and the ROK have been fruitful.
His remarks were made during a closed-door meeting with the chairman of the ministry’s Economic and Financial Policy Committee, which discussed the outcome of the Cambodia-Korea FTA negotiations at the ministry on Friday, according to a press release.
Pornmoniroth said the agreement is aimed at improving access to each other’s markets by reducing tariffs and non-tariff barriers.
He added that the agreement will also promote trade facilitation aimed at increasing bilateral trade to contribute to strengthening and deepening trade cooperation between the two countries.
Pornmoniroth said: “The negotiation of this agreement also shows the strong commitment of the Royal Government in its efforts to continue its economic integration into the region and the world, despite the current difficult situation. We will gain export markets for our products that are abundant and better, as well as contribute to creating more job opportunities for the people of Cambodia,” he said.
He said that through this agreement, Cambodia will have a better opportunity to export its potential products to the Korean market. Export opportunities are currently limited between the two countries.
In addition, trade-related procedures will be improved and simplified to facilitate trade between the two countries. The positive effects stemming from this agreement will contribute to the development and sustainability of economic growth by boosting bilateral trade.
Pornmoniroth said: “I would like to thank the leadership of the relevant ministries and institutions, especially the negotiation team, for their efforts in organizing and actively participating in the negotiation process of this agreement, and I would like to encourage the negotiation team to continue their efforts by adhering to the guidelines and recommendations of the meeting so that the negotiations can achieve better results as planned.”
The two countries previously held talks on August 31 and September 3 this year.
Ministry of Commerce spokesman Seang Thay told The Post on Sunday the previous two rounds of bilateral FTA talks discussed market access, trade remedies, rules of origin of goods, customs procedures, trade facilitation and economic, legal and institutional cooperation.
“Both sides agree that the signing of a bilateral free trade agreement will bring mutual economic and trade benefits,” he said.
Thoeun Techmeng, head of Delegation of Confirel Co Ltd, a Kampot palm sugar and pepper producer and exporter, said that the Korean market has contributed to boosting the company’s palm sugar exports from Kampong Speu province. The company’s palm sugar exports grew 92 per cent in the last 8 months. Kampong Speu palm sugar is a European Union Geographical Indication (GI).
“The bilateral free trade agreement between Cambodia and Korea will help expand the market for my company’s exports to the Korean market by expanding partnerships and creating more opportunities to promote Cambodian products,” he said.
He added that the palm sugar exports to the Korean market accounted for 13 per cent of the market share during this period, with other destinations including the US, China, Taiwan, Vietnam, Kazakhstan and Ivory Coast.
The Cambodian government is also looking at the possibility of establishing free trade agreements with India, Australia, the US, Canada, the UK, New Zealand and Japan.
